Novell (NOVL) dirt cheap, good buy? Message Board

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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: zwolff who wrote (34490)	10/30/2000 12:42:03 AM
From: kilo_watt	Read Replies (2) of 42771

Holy cow... I'll give it shot: Point 1 = Does the company have products or services with sufficient market potential to make a sizeable increase in sales for at least several years? The company has "technology" but I do not believe they have products that meet the above qualifications. Further, I believe Novell's internal scramble to become a professional services company is absolutely and totally the wrong thing to do. It is purely a reactionary response by a befuddled sr leadership. Point 2 = Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when currently attractive product lines have largely been exploited? Hrm... I don't honestly know. I'm sure they'd like to. Point 3 = How effective are the company's research and development efforts in relation to its size? Extremely effective, in my opinion. Point 4 = Does the company have an above average sales organization? Oh good lord, NO! Point 5 = Does the company have worthwhile profit margins? On a product line basis, gross margins are very high. Software is always an extremely high-margin item. Point 6 = What is the company doing to maintain or improve profit margins? Heh... pursuing a lower-margin services business. Does that make sense? Doesn't to me either. Point 7 = Does the company have outstanding labor and personnel relations? With the exception of miserable morale, yes. Point 8 = Does the company have outstanding executive relations? I have no factual idea, but my guess is no. Considering how many key sr mgrs have already left.... Point 9 = Does the company have depth to its management? Not by a long shot. Point 10 = How good are the company's cost analysis and accounting controls? I dunno. Point 11 = Are there aspects of the business, somewhat peculiar to the Industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition? From a technology perspective yes. From an execution perspective, yes again, but the comparison would not favor Novell. Point 12 = Does the company have a short range or long range outlook in regards to profits? Depends on who you ask, doesn't it? Eric would say long range, I think. Nortz wouldn't. Point 13 = In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing shareholders' benefit from this anticipated growth? Nope. Point 14 = Does the management talk freely to investors about its affairs when things are going well but "clam up" when troubles and disappointments occur? Quite the opposite, eh? Point 15 = Does the company have management of unquestionable integrity? I think you guys know the answer to this.

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